Chart USD/ZAR Update: Sharp break higher
The anticipated minor pullback has bounced smartly from 17.2500
Level | Comment | Level | Comment | |||||
---|---|---|---|---|---|---|---|---|
R4 | 18.5000 | * | congestion | S1 | 17.7500 | * | congestion | |
R3 | 18.2950 | ** | 76.4% ret of Aug-Sep fall | S2 | 17.6000 | * | congestion | |
R2 | 18.0500 | ** | 61.8% ret of Aug-Sep fall | S3 | 17.5000 | * | break level | |
R1 | 18.0000 | * | congestion | S4 | 17.3500 | ** | break level |
Asterisk denotes strength of level
12:05 GMT - The anticipated minor pullback has bounced smartly from 17.2500, as oversold daily stochastics unwind, with steady gains currently pressuring strong resistance at congestion around 18.0000 and the 18.0500 Fibonacci retracement. The daily Tension Indicator has also ticked higher and broader weekly charts are positive, highlighting an improvement in sentiment and room for further strength in the coming sessions. A break above 18.0500 will open up the 18.2950 retracement, but by-then overbought daily stochastics could prompt more significant profit-taking around here. Meanwhile, a close below congestion support at 17.7500, not seen, would turn sentiment neutral and give way to fresh consolidation above 17.5000 - 17.6000.